Correlation Between Okins Electronics and Aprogen Healthcare
Can any of the company-specific risk be diversified away by investing in both Okins Electronics and Aprogen Healthcare at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Okins Electronics and Aprogen Healthcare into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Okins Electronics Co and Aprogen Healthcare Games, you can compare the effects of market volatilities on Okins Electronics and Aprogen Healthcare and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Okins Electronics with a short position of Aprogen Healthcare. Check out your portfolio center. Please also check ongoing floating volatility patterns of Okins Electronics and Aprogen Healthcare.
Diversification Opportunities for Okins Electronics and Aprogen Healthcare
0.37 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Okins and Aprogen is 0.37. Overlapping area represents the amount of risk that can be diversified away by holding Okins Electronics Co and Aprogen Healthcare Games in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Aprogen Healthcare Games and Okins Electronics is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Okins Electronics Co are associated (or correlated) with Aprogen Healthcare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Aprogen Healthcare Games has no effect on the direction of Okins Electronics i.e., Okins Electronics and Aprogen Healthcare go up and down completely randomly.
Pair Corralation between Okins Electronics and Aprogen Healthcare
Assuming the 90 days trading horizon Okins Electronics Co is expected to generate 1.17 times more return on investment than Aprogen Healthcare. However, Okins Electronics is 1.17 times more volatile than Aprogen Healthcare Games. It trades about -0.03 of its potential returns per unit of risk. Aprogen Healthcare Games is currently generating about -0.05 per unit of risk. If you would invest 1,945,000 in Okins Electronics Co on August 25, 2024 and sell it today you would lose (1,477,500) from holding Okins Electronics Co or give up 75.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 97.11% |
| Values | Daily Returns |
Okins Electronics Co vs. Aprogen Healthcare Games
Performance |
| Timeline |
| Okins Electronics |
| Aprogen Healthcare Games |
Okins Electronics and Aprogen Healthcare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Okins Electronics and Aprogen Healthcare
The main advantage of trading using opposite Okins Electronics and Aprogen Healthcare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Okins Electronics position performs unexpectedly, Aprogen Healthcare can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Aprogen Healthcare will offset losses from the drop in Aprogen Healthcare's long position.| Okins Electronics vs. Seoul Electronics Telecom | Okins Electronics vs. LAKE MATERIALS LTD | Okins Electronics vs. Ecoplastic | Okins Electronics vs. Hyundai Engineering Plastics |
| Aprogen Healthcare vs. Kakao Games Corp | Aprogen Healthcare vs. ABCO Electronics Co | Aprogen Healthcare vs. Okins Electronics Co | Aprogen Healthcare vs. Cots Technology Co |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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